CBI Director General John Cridland expressed his concerns regarding mis sold PPI and the amount of money the banks are losing due to PPI claims. He states that the money spent for compensation is much more useful if it was put to more economic use. Cridland proposed for a time limit for customers to make their insurance claims.
Cridland and the banks criticized claims management companies (CMCs) for taking advantage of the situation and earning profits, with banks stating that the claims of CMCs cost them more than what they expected. CMCs were responsible for the skyrocketing thousands of claims each month.
However, CMCs such as Mis Sold PPI Claims Co, state that they are only “helping hands” that enable customers to have a say in a situation such as PPI claiming. They help people who are mostly busy working or have a hectic schedule. They say that they do advertise, but it doesn’t mean they can force people to work with them.
CMCs charge customers for their services under the condition that the CMC’s can deliver satisfactory results to their customers, namely the recompense deserved.
The Financial Ombusman regarded that CMCs have the same chance as customers in reclaiming their repayments for PPI, but also regarded CMCs as “picking up on the responsibility that banks had”. Banks were previously asked by the Financial Services Authority to call upon all customers mis sold PPI to make a claim and claims management companies are doing the same, but not just for a limited period of time.
“M.P’s, don’t you for a minute think about regulating the press in this country, which has been free for 300 years.” said Mayor of London Boris Johnson, who is viewed as the best candidate for the Conservative Party next to British Prime Minister David Cameron. The final report on the British phone-hacking scandal, which involved the Rupert Murdoch News Corporation and its tabloid’s hacking of phone and text messages from private phones of actors and soldiers in Afghanistan and Iraq, split the government into two as the report is feared by the free press to lead to statutory regulation.
British lawmakers opened a defense against the statutory regulation of press freedom. The group of 80 said that being parliamentarians, they believe in free speech and are opposed to any statutory control of the press.
The report is to be made public on Thursday and is expected to split the political entities of the British parliament about the future of press control and regulation. The current regulation system of the press is that of self-regulation through the Press Complaints Commission, which many lawmakers and newspaper editors found to be ineffective.
The epicenter of the Phone Hacking scandal was that from the the late 13-year old murder victim Milly Dowler’s messages, which her mother, Sally Dowler, found false hope when she thought her daughter picked up her phone and some voicemail messages were deleted. The messages were deleted by hacker, Glenn Mulclaire, a private investigator working for the Sunday tabloid, which triggered public outrage.
Prime Minister David Cameron said that in light of the issues circulating about press control and statutory regulation, he aims that the outcome will always be that to “preserve the freedom of the press with proper respect to privacy.”